If the UK were to join the Euro we would have the same interest rate as the Eurozone area. Monetary Union involves a Common Monetary policy - interest rates set by ECB. Therefore interest rates would fall by 1.5%. This would be good news for those with mortgage payments. However if interest rates were to fall by 1.5% it would increase consumer spending and therefore could cause inflation.

Lower interest rates would have a big impact on the UK because we have high levels of debt. It would also have a big impact on the UK housing market. Lower interest rates are likely to increase the housing boom, which is not desirable given the already high levels of high prices.